Compare Leading Forex Brokers

If you are interested in trading FX, you will need to find a trusted forex broker to place your trades with. But with so many options, how do you compare forex brokers, and which one is a good fit for you? Well, the good news is we have done the hard work for you!

This quick guide to comparing the best forex brokers should help you make what can be a difficult and time-consuming task. Of course, the final decision will always be yours, we are just hoping to point you in the right direction. All listed forex brokers are fully regulated.

Recommended Forex Brokers For 2021:

Broker     Official Site   Max. Leverage Regulations Min. Deposit    Spreads From Review
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200:1 $0 0.14 (Fixed)
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500:1 $100 From 0 pips
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500:1     $200 From 0.1 pips
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400:1 $100 From 0.9 pips
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400:1   $100 From 0.5 pips
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What are Forex Brokers and What Do They Do?

GraphicsA forex broker, also known as an FX broker, or currency broker, acts as an intermediary or middleman between forex traders and the currency markets. The forex broker receives its pricing from a network of banks, and feeds these into its trading platform so that you can buy & sell foreign currency pairs on its trading system.

The role of a forex broker is like that of an equities broker or commodities broker. You are opening an account with them to utilise their infrastructure and experience – things like their live fx price feeds, trading platform, customer support, charting package, risk management tools and more.

In days gone by, fx brokers operated by telephone and clients would be required to call in with their orders and instructions. The internet changed that and today, almost all forex brokers offer an online trading system where you can place and manage your own currency trading.

Once you have successfully opened an FX trading account with a forex broker, you will be able to access the world’s different currency pairs and speculate on the rising or falling of those pairs in the hope of making a profit.



How Do You Find a Great Forex Broker?

When it comes to choosing a forex broker, there are a variety of factors to keep in mind. We have listed a few of these below and we hope these pointers help guide you.

Are They Regulated and Where?

Possibly the most important factor when considering which FX broker to select, is whether they are regulated and if so, where do they hold their licenses.

Here is a general regulatory guide:

  • Broker is unregulated – DO NOT TRADE WITH.
  • The broker is regulated but only holds a licence in a holiday destination (Vanuatu, The Bahamas, British Virgin Islands etc.) – DO NOT TRADE WITH.
  • Broker holds at least one Tier-one regulatory licence (think FCA, ASIC, CySec, MAS etc.) – GENERALLY SAFE TO TRADE WITH.

To be quite blunt – unregulated forex brokers are typically the ones who get caught scamming clients at some stage, so we would recommend avoiding them at all costs. Your search should always start with a regulated forex broker, as these are likely to be more dependable and reliable.

Forex Trading Platform

Lady trading on laptopAnother key consideration in finding the best forex broker is the trading platform/s they offer and the reliability of that platform.

Remember, the broker’s forex trading platform will be your gateway to the forex market and so it is critical that you find the platform easy to use & navigate, and that it is reliable, fast, with excellent pricing.

Things to look for:

  • Is the platform user-friendly and easy to navigate? Is it one that you could use long-term? If the answer is no and you find the platform ugly, not user friendly or just plain annoying, then look for another one.
  • Does the platform execute trades quickly and at the price you requested?
  • Is there a free charting package attached to the platform or do you have to pay for it? Most brokers will offer a free charting package as part of the deal but always check first.
  • Are there a wide range of trading tools, like market analysis, economic calendar, and educational tools for you to use?

 

Commission and Spreads

How much your broker is charging you to trade is another critical factor that needs serious consideration. Many brokers do not charge any commission, although this will vary by broker. Instead, their main charge will be the spread, which is simply the difference between the buy and sell price.

This is what most brokers will offer you:

  • Spread-only: you will not pay any commission when you trade with ‘spread only’ forex brokers; you will only pay the spread. Check out how ‘wide’ their spreads are as they be wider (more expensive) due to not charging any commission.
  • Commission-only: this is the reverse of the above, spread-only model. Here an FX broker will not charge any spread, but you will pay a commission instead. Check out how much that commission fee is per trade.
  • Spread and Commission: some brokers will charge you a bit of both – you might get a low spread and a small commission fee on top.

Your job is to work out which option is cheaper!

In addition, when checking out the spreads offered by each broker, check if the spreads available are fixed or variable. Some traders like certainty with their trading costs and if that is the case, they are better suited to a fixed-spread forex broker. Those hoping to get “spreads from 0.1 pips” are better suited to a variable spread broker.

Always look for a forex broker that offers tight, fixed spreads and no commission – they are out there!

Why is Forex Trading so Popular?

Trading currency pairs online is easily the largest financial market in the world, with an estimated $6.6 trillion in forex being turned over each day in 2019!

It is the most actively traded market because of the following:

  1. The FX market is almost always open. Whilst other global markets close, like stock exchanges for instance, the FX markets trade 24 hours a day, 5 days a week.
  2. People have a need to exchange currencies. Governments, businesses and travelling individuals all have a genuine need to swap local currency for another, so this keeps the forex market constantly active and in demand.
  3. Learning to trade FX is relatively easy. The dawn of the internet has seen the popularity of FX trading skyrocket over the past two decades. New and inexperienced traders can find a plethora of educational content online and they can start trading with as little as USD $100.

Unfortunately, many new traders still fail to follow their own strategies or lack discipline, and that can lead to large losses. Stating that ‘learning to trade forex is simple’ does not translate to ‘forex trading is easy’!

Which Trading Platforms Do Forex Brokers Offer?

There are several forex trading platforms that your broker may offer; the most obvious are below:

Web-Based FX Platforms

Plenty of forex brokers will offer trading platforms that do not need to be downloaded to your PC or Mac. Instead, the platform is web-based, and this means you just need access to the internet, and you will be able to login to your forex trading account, literally from anywhere in the world.

Mobile MT4 appDownloadable Forex Platforms

One of the most popular trading platforms of all time, MT4, is a downloadable trading platform. Thus, given many forex brokers offer MT4 or MT5, it is likely you will have a downloadable platform at some point in time. Downloadable platforms mean that you can only use that platform from the PC or Mac that you originally downloaded to.

Proprietary Trading Platforms

A proprietary platform is a platform that a broker has built in-house, i.e., it is their own trading platform, designed by their developers etc. The reason a broker might create and build their own trading platform is because they feel they do better than what is currently out there. There are plenty of forex brokers that offer their own proprietary platforms to its users.

Mobile Forex Applications

Trade on the run by using your mobile forex application! Pretty much all brokers offer their platform as an app on iPhone and Android. The apps are usually stripped-back versions of their main platform, but they do the job and are getting better all the time.